Ex-BofA Employee Under DOJ Scrutiny Hired by Fannie Mae and 2 Other Hot Stocks to Watch
Bank of America Corp. (NYSE:BAC): Current price $14.66
The former Bank of America Corp. executive Adam Glassner, whose work on mortgage bonds is the target of regulator and Justice Department lawsuits, has been hired by Fannie Mae months after the claims began to emerge. Glassner was named a defendant in a complaint filed in September 2011 by the Federal Housing Finance Agency, which oversees Fannie Mae, in regards to losses incurred by the firm. He came to Fannie Mae in January 2012 and was employed there until 2013. Last week, he also was referred to as “BOA-Securities Managing Director” in a Justice Department lawsuit against Bank of America, according to a knowledgeable source.
Delta Air Lines Inc. (NYSE:DAL): Current price $19.32
Delta has appointed the aviation industry veteran Patricia Ornst as Director – New York state and local government affairs, effective Friday. She will work closely with the carrier’s government affairs team in Washington, led by Senior Vice President, Government Affairs, Andrea Newman. Ornst has over 15 years of experience in positions in New York and Washington, DC. Before joining Delta, she spent two years as managing director – state and local government affairs, Northeast region for American Airlines.
Cree Inc. (NASDAQ:CREE): Current price $61.20
Cree shares are down more than 20 percent Wednesday after the company posted approximately in-line fourth quarter results, but gave first-quarter profit guidance that was lower than anticipated. The maker of LED products forecast that sales during its first quarter, which ends in September, would be unchanged versus the previous quarter. However, Cree estimated that its margins would rise slightly, boosted in part by higher sales of more profitable LED products. Chief Executive Chuck Swoboda remarked that, “The Cree LED bulb is gaining momentum,” while its LED lighting business has “grown significantly.” However, the firm provided first quarter earnings per share guidance of between 36 and 41 cents, below the consensus estimate of 43 cents.